Alternative Data Market
Report ID: SQMIG45C2095
Report ID: SQMIG45C2095
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Report ID:
SQMIG45C2095 |
Region:
Global |
Published Date: January, 2025
Pages:
187
|Tables:
91
|Figures:
71
Global Alternative Data Market size was valued at USD 16.82 Billion in 2024 and is poised to grow from USD 24.61 Billion in 2025 to USD 516.58 Billion by 2033, growing at a CAGR of 46.3% during the forecast period (2026–2033).
The key drivers attributed to alternative data market growth are related to the stunning rise in types of alternative information sources since the last decade. The majority of digital forensics currently used in practice, such as web scraping and financial transactions, are already well-established sources while the emerging sources such as mobile devices, social media platforms, satellites, sensors, IoT-enabled devices and more, are gaining mainstream acceptance. Thus, the companies are trying to harvest their offering by collecting data from all of these sources.
Increasing usage of hedge funds is projected to create lucrative growth opportunities for market during the forecast period. It has now been widely adopted, with over half of hedge fund managers using it in the pursuit of alpha generation and supporting the risk management processes. Compared to normal financial statements, which can be sourced from regular databases, alternative data is hard to use in strategic planning. It is usually unstructured, not stored in a particular way and collected at very high frequency. Hence, to utilize the heuristics rendered out of it, the investor has to procure resources varying from expert personnel to technologies like analytics platform, fluid data architecture, data science and testing tools. Though, AI tools in machine learning and NLP are also trending for analysis. Processing enabled by AI fosters information proliferation as well as extraction of latent patterns.
Market snapshot - 2026-2033
Global Market Size
USD 11.5 billion
Largest Segment
Credit & Debit Card
Fastest Growth
Social & Sentiment Data
Growth Rate
46.3% CAGR
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Global Alternative Data Market is segmented by Type, Industry, End Use and region. Based on Type, the market is segmented into Credit & Debit Card Transactions, Email Receipts, Geo-location (Foot Traffic) Records, Mobile Application Usage, Satellite & Weather Data, Social & Sentiment Data, Web Scraped Data, Web Traffic and Other Data Types. Based on Industry, the market is segmented into Automotive, BFSI, Energy, Industrial, IT & Telecommunications, Media & Entertainment, Real Estate & Construction, Retail, Transportation & Logistics and Other Industries. Based on End Use, the market is segmented into Hedge Fund Operators, Investment Institutions, Retail Companies and Other End Use. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
According to alternative data market analysis, in 2023 credit and debit card transaction segment is dominating with largest alternative data market. This large portion is due to the high interest investors have in this type of data and because there are a lot of suppliers for credit card transaction data. Credit scoring data-enriched with alternative data such as gig economy income, history of paying rent on time, utility bill payment, etc. can empower lenders to make a decision about granting loans or not. The growing capabilities of the data providers will also aid in accelerating the largest growth rate seize by this segment across the forecasting timeline, as these offer features like sorting customer expenditure based on gender, age, seller, geography and beyond. Now the companies are co-relating transaction data with other type of data to find hidden insights on consumer spend patterns, helping investors to invest in potentially profitable businesses.
As per alternative data market forecast, social and sentiment data segment is expected to witness the fastest growth. This growth is driven by the increasing demand for retail use of smartphones. It is used by retail companies to observe the usage behavior towards their e-commerce application. In addition, the retailers are using sentiment data on social media sites to understand user interests from different groups and regions. Also appealing is the geolocation (foot traffic) from satellite images to understand how many customer visit stores at a particular time and days, thus helping shape operational strategies for operating the stores. These sources are not as accurate as transaction data, but companies are finding ways to make connections and come up with insights.
BFSI has emerged as an industry leader in implementing alternative data to secure a competitive edge, enhance decision-making capabilities, and mitigate exposure to risk in the alternative data industry. BFSI segment of alternative data provides a range of applications, including credit scores, and fraud mitigation as well as market intelligence and investment top choices. Moreover, the unstructured nature of a lot of alternative data is precisely why risk assessment/management in BFSI has emerged as one of the primary drivers for its usage/adoption. As a result, such factors are responsible for the growth of this segment which in turn propels the market growth over the forecast period.
According to alternative data market forecast, in 2023, the IT & telecommunications segment was witnessing the fastest growth in the market. For telecom companies, low bandwidth, dropped calls and poor network are burning problems. As a result, operators are increasingly utilizing alternative data for equipment monitoring, capacity planning and preventive maintenance to optimize their services. In addition to these, companies are utilizing demographic data, social and sentiment analysis data, and browsing behavior data for targeted ads as well as regional marketing strategies. These factors are increasing the growth of the segment, leading to the expansion of alternative data market share.
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North America is dominating the market due to increasing adoption of alternative data, resulting in the expansion of alternative data market size. The sizeable market share of the region is attributed to a number of market players such as Advan, Eagle Alpha, M Science and UBS Evidence Lab. This factor along with the early adoption of alternative data from range of industry verticals makes this nation most prominent holder in market. Today, over 70% of American asset managers want to include alternative data in their investment strategy. Business alliances and purchases from Nasdaq and S&P Global Platts will also help spur the growth of the regional market. These are raising it above otherwise competitive regions.
Increasing demand for data-driven research utilization among the investors has propelled the market in Asia Pacific region to become one of the fastest growing regional markets. Regional market is expected to offer substantially higher growth opportunities for the companies from emerging economies which include India, Singapore, Thailand and China. The growth of alternative data use cases in the BFSI, retail, automotive and telecommunications industries is also a reason for this. Alternative data to be used for investment and risk assessment by companies in developing markets, such as China and India, is expected to continue driving the regional market expansion.
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Growing Application of Alternate Data in Hedge Funds
High Volume Data Collection
Data Interpretation Issues
Low Degree of Data Accuracy
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The alternative data industry is expected to witness a high growth phase in the near future. The market is quite fragmented, with many small-scale companies and start-ups. In order to gain competitive advantage, the key market players are also focusing on achieving optimum accuracy in data sets and developing premium quality and high-value datasets through Research and Development (R&D) Studies by constantly innovating themselves. With respect to many of the types of data considered, such as sentimental data, footprint data, transaction data and others, we expect the threat of substitutes of alternative data would be low since a direct alternative in the market does not exist. Also, the web scraped and public domain dataset/verbiage like Annual reports, financials, etc., are turning out to be obsolete for better decision making as strategy managers start venturing toward alternative data to frame business strategies.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, alternative data industry is proving to be a game-changer in the realm of financial analytics and market insights; one that provides a holistic view of the market dynamics far greater than what traditional sources can provide. Financial related transactions are the major application area of alternative data which is also Credit and Debit Card Transactions. By analysing the patterns and trends in these transactions, businesses and investors can glean invaluable insights into consumer behaviour: spending habits, as well as greater economic activity. On top of that, by examining the data behind email receipts, companies have access to a true insight into customer buying habits and preferences.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 16.82 Billion |
| Market size value in 2033 | USD 516.58 Billion |
| Growth Rate | 46.3% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Alternative Data Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Alternative Data Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Alternative Data Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Alternative Data Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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